The Ottawa County Sheriff's office and Ottawa County Prosecutor Mark Mulligan launched a criminal investigation this week after two Port Clinton administrators were linked Thursday to missing scrap metal.
Safety-Service Director Rich Babcock resigned Thursday while Service Department Supervisor Kenneth Heschel was demoted to heavy equipment operator.
Babcock and Heschel are accused of selling scrap metal from a city-owned facility with the intent to set up a slush fund. They were also aware of a cash slush fund established by city employees from the sale of scrap metal.
"For constitutional reasons, we have conducted an investigation independent of the city," Mulligan said. "I was consulted about the investigation yesterday, and I was led to believe the sheriff's investigation would wind up either today or yesterday."
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